The Government of Canada offers home buying programs and incentives for homebuyers and this will help to purchase their first home.
- The government’s Help to Buy scheme is designed to help first-time buyers get a foot on the property ladder by allowing them to buy their first home with a mere 5% deposit.
- Buyers can borrow 20% of the property’s price (or 40% if they live in London), interest-free for the first five years.
- First time home buyers can receive 5% or 10% of their home purchase price for the down payment. A person can withdraw upto $40,000from their RRSP to buy their first home and this amount is totally tax free amount. Till the year 2022, this amount was $35000, but now the Government of canada has increased this amount by $5,000. This amount can be paid back from the second year after withdrawing the amount from RRSP.
- One person can take upto 15 years to payback this amount. For example if a person withdraw money in the year2022 then he/she can start repaying it from the 2024.
- If a person wants to make one time payment, it can also be done. One can be eligible to receive a non-refundable tax credit of up to $1500 as a home buyers amount.
- One can be eligible for a rebate for some of the taxes they pay when buying your home.